Experts Offer Investing Strategies for Navigating 2026 Market Volatility

Morningstar's Dan Lefkovitz shares insights on the wild ride of 2025 and essential lessons for the year ahead.

Apr. 10, 2026 at 4:41am

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An extreme close-up of the heavy, industrial components that make up the inner workings of the banking and financial system, conveying a sense of the tangible, physical infrastructure underlying the markets.A close-up view of the intricate machinery powering the financial industry, a metaphor for the complex forces shaping market volatility.Washington Today

As the turbulent 2025 stock market comes to a close, financial experts are offering guidance on where to invest in 2026. Morningstar Indexes strategist Dan Lefkovitz analyzes the unexpected twists and turns of the past year, from the impact of AI and government policies to the standout performers and underachievers. With volatility expected to continue, Lefkovitz emphasizes the importance of diversification, fair pricing, and understanding exposure to emerging tech themes like AI.

Why it matters

The volatility of 2025 tested even the steadiest investors, with the US market ultimately delivering robust gains despite significant swings. As we look ahead to 2026, understanding the drivers behind this turbulence and learning from the year's lessons can help investors navigate the uncertain terrain and position their portfolios for success.

The details

Throughout 2025, the US stock market experienced significant volatility, with unexpected twists and turns that caught many investors off guard. Morningstar Indexes strategist Dan Lefkovitz highlights how disruptions from trade policies, technological advancements, and global events chipped away at investor confidence, leading to market swings. Despite the turbulence, the broader US stock market managed to deliver strong gains, defying initial predictions. Lefkovitz's analysis delves into the standout performers and underachievers, as well as the underlying forces fueling the market's instability, such as the debate over the AI boom and its potential impact on various sectors.

  • Lefkovitz's analysis was published on April 10, 2026.
  • The article discusses the volatility of the US stock market throughout 2025.

The players

Dan Lefkovitz

A strategist and columnist at Morningstar Indexes who has analyzed the performance and trends of the 2025 stock market.

Preston Caldwell

Morningstar's senior US economist who has shared his 2026 interest rate predictions and insights on the Federal Reserve's internal debates.

Sarah Hansen

Morningstar's senior markets reporter who has explored the rare internal divisions within the Federal Reserve and their implications for investors.

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What they’re saying

“I believe the debate over whether we're witnessing an AI bubble will linger in the market's consciousness. Regardless of your stance, investors should stay informed about their potential exposure to AI-related themes in their holdings. If you're simply invested in a broad US stock index fund or a diversified portfolio, you might have more ties to AI than you realize, thanks to the increasing concentration in the US market and the prominence of technology and AI-driven companies at the top.”

— Dan Lefkovitz, Strategist and Columnist, Morningstar Indexes

What’s next

As we transition into 2026, Lefkovitz emphasizes the need for investors to closely monitor specific areas, such as the ongoing debate over the AI bubble and its potential impact on various sectors and investment strategies. The lessons learned from the volatility of 2025, including the importance of diversification, fair pricing, and understanding exposure to emerging technologies, will be crucial in navigating the uncertain terrain ahead.

The takeaway

The volatility of 2025 has highlighted the importance of diversification, fair pricing, and staying informed about emerging trends like AI for investors looking to navigate the uncertain market conditions of 2026. By learning from the lessons of the past year, investors can position their portfolios to weather the storms and potentially capitalize on the opportunities that may arise in the year ahead.